Shiba Inu and Dogecoin they experienced a market crash today after the fall in the price of Bitcoin. Both meme coins have seen their prices drop by more than 7% already, leaving investors confused as to what is causing the crash. All roads actually lead to Bitcoin and the massive sales that have dominated the leading cryptocurrency.
Bitcoin Price Sends Shiba Inu and Dogecoin Spiraling
Although the price of Dogecoin and Shiba Inu has been falling, it is actually following the lead of Bitcoin, which has seen a lot of selling recently. Bitcoin’s price drop to $57,000 was caused by sales from the US and German governments, causing the price to continue to fall.
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On-chain data tracking and aggregation platform Arkham Intelligence, reports transactions from BTC wallets linked to the German and US governments. According to the platform, the German government sent $29.95 million (500 BTC) to the Bitstamp crypto exchange. Given that coins are often sent to exchanges to sell them, the market reacted negatively, as a result of which the price of BTC fell.
Another transaction that has attracted the attention of investors is the one related to the US government. On Thursday morning, Arkham also reported a transaction involving 249.43 BTC, worth $14.38 million at the time of the transaction.
Unlike the German government transaction, the US government transaction was not sent to a centralized exchange like Bitstamp, instead it was sent to an anonymous wallet. However, this does not imply that the US government is not selling, as the transaction may be an over-the-counter (OTC) transaction that eliminates exchange payments.
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While the prices of Dogecoin and Shiba Inu have held up very well due to the market crash, they have still seen significant declines. On the other hand, the price of Dogecoin fell by 7% to reach $0.11 after a good start to the year 2024.
Following the same trend, the price of Shiba Inu has already decreased by 8% in the last 24 hours. This drop brought the price of Shiba Inu down to $0.0000153, which represents a drop of more than 50% from its price peak in early 2024. On the weekly chart, both meme coins also suffered, Dogecoin and Shiba Inu fell by 9.3% and 10.6%, respectively.
As for whether the prices of these meme coins will continue to struggle, it all comes back to the price of Bitcoin. This is because the first cryptocurrency, which usually leads the way in the market, has seen the majority of sales. So if the price of Bitcoin starts to stabilize, then Dogecoin and Shiba Inu are expected to follow.
The featured image was created with Dall.E, a chart from Tradingview.com
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